South Korea Suspends Sales Of 32 Models Owned By The Volkswagen Group

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Volkswagen recorded good sales globally during the first half of the year 2016, becoming the top selling carmaker. But that fact is just not enough to shake off the Diesel Gate scandal image the carmaker has earned.

Now, South Korea has suspended sales of 32 models owned by the Volkswagen Group, which is a huge hit for the German carmaker because South Korea is Asia's fourth largest economy. The carmaker was also fined USD 16.06 million, for forging documents in regards to emission and noise pollution.

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South Korea's suspension of sales of Volkswagen models is only adding pressure to the German carmaker as it is trying to correct a damaged image of itself. Moreover, South Korea is a big market for the Volkswagen Group for its luxury brands like Audi and Bentley.

The environment ministry said that it revoked certification for 83,000 diesel and petrol powered Volkswagens, Audis, and Bentley models. Now, a total of 2,09,000 Volkswagen Group owned vehicles have been de-certified in South Korea. This amounts to almost 68 percent of the vehicles sold by the Volkswagen Group in South Korea since 2007.

Earlier in November, the South Korean government revoked certification of 1,26,000 VW vehicles and ordered a recall, while also penalising the carmaker with a fine for manipulating emission results. Volkswagen's office was also raided in Seoul and an executive was arrested.

Source: Reuters

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